Petitioner submitted that showing the vehicle as ODC was a mere error and there was no mala fide intention on part of the petitioner to avail of any longer period of validity of the e-way bill. The goods and vehicle must be released on payment of 50% of the disputed amount. Demand of taxes with penalties before the issue is adjudicated, is without authority of law.
Section 129 of the CGST Act, 2017 — Goods in Transit –-- The petitioner is engaged in the business of providing construction materials. The petitioner had sold goods valued at Rs. 813294/- on which he had paid GST of Rs. 146393/-. The consignment was to be transported from Guwahati to Agartala. The petitioner had generated an e-way bill on 18.08.2021. The said consignment was intercepted and detained on the ground that in the e-way bill the petitioner had deliberately misdeclared the vehicle and it was a deliberate attempt to avail longer period of validity of e-way bill. A SCN was issued, the petitioner filed a detailed reply on 29.08.2021 and requested for release of the vehicle and the goods. The counsel for the petitioner submitted that showing vehicle as ODC was a mere error and there was no mala fide intention on part of the petitioner to avail of any longer period of validity of the e-way bill. The respondent counsel submitted that the entire issue needs to be examined and cannot be judged at this stage before this Court. The court observed that the demand of the respondent that the petitioner must pay the taxes with penalties even before the issue is adjudicated, is without authority of law.
Held that:- The Hon’ble High Court held that in the meantime the goods and vehicle must be released on certain conditions. The competent authority shall pass final order in accordance with law regarding the petitioner’s further tax/penalty liability, if any. If no liability is established, the amount deposited under this order shall be returned to the petitioner.
Petitioner submitted that showing the vehicle as ODC was a mere error and there was no mala fide intention on part of the petitioner to avail of any longer period of validity of the e-way bill. The goods and vehicle must be released on payment of 50% of the disputed amount. Demand of taxes with penalties before the issue is adjudicated, is without authority of law.
Section 129 of the CGST Act, 2017 — Goods in Transit –-- The petitioner is engaged in the business of providing construction materials. The petitioner had sold goods valued at Rs. 813294/- on which he had paid GST of Rs. 146393/-. The consignment was to be transported from Guwahati to Agartala. The petitioner had generated an e-way bill on 18.08.2021. The said consignment was intercepted and detained on the ground that in the e-way bill the petitioner had deliberately misdeclared the vehicle and it was a deliberate attempt to avail longer period of validity of e-way bill. A SCN was issued, the petitioner filed a detailed reply on 29.08.2021 and requested for release of the vehicle and the goods. The counsel for the petitioner submitted that showing vehicle as ODC was a mere error and there was no mala fide intention on part of the petitioner to avail of any longer period of validity of the e-way bill. The respondent counsel submitted that the entire issue needs to be examined and cannot be judged at this stage before this Court. The court observed that the demand of the respondent that the petitioner must pay the taxes with penalties even before the issue is adjudicated, is without authority of law.
Held that:- The Hon’ble High Court held that in the meantime the goods and vehicle must be released on certain conditions. The competent authority shall pass final order in accordance with law regarding the petitioner’s further tax/penalty liability, if any. If no liability is established, the amount deposited under this order shall be returned to the petitioner.